Mitch McConnell Accidentally Killed All Corporate Tax Deductions In His Rush To Pass Tax Cuts

Crooks and Liars

NY Mag reports that in his zeal to hand out some incentives to senators like Susan Collins, he had to offset them with revenue.

How better to fix that than to reinstate the corporate Alternative Minimum Tax, which provides that corporations shall pay 20 percent of their income no matter what? Well, the problem is that they lowered the regular corporate tax rate to 20 percent.

In hindsight, McConnell should have asked for an extension. While Republicans were manically outlining their plans to take from the poor to give to the Trumps, they also, accidentally, nullified all of their corporate donors’ favorite deductions.

The Senate bill brings the normal corporate rate down to 20 percent — while leaving the alternative minimum rate at … 20 percent. The legislation would still allow corporations to claim a wide variety of tax credits and deductions — it just renders all them completely worthless. Companies can either take no deductions, and pay a 20 percent rate — or take lots of deductions … and pay a 20 percent rate.